The Following Miscellaneous Data Has Been Collected for Sawyers Manufacturing

question 21

Essay

The following miscellaneous data has been collected for Sawyers Manufacturing Company for the most recent year-end:

inventories	Begining	Ending
Raw material	$50,000	$55,000
Work in process	40,000	45,000
Finished goods	60,000	50,000
Costs recorded during the year:
Purchases of raw material	$195,000
Direct labor	$150,000
Cost of goods sold	595,000

Required: Prepare statements of cost of goods manufactured and cost of goods sold showing how all unknown amounts were determined.

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Definitions:

Unlimited Liability

A business obligation where owners are personally responsible for all of a company's debts.

Corporate Form

The legal structure of a business recognized as a separate entity from its owners, providing limited liability.

Owners

Individuals or entities that legally possess property, businesses, or assets.

Sole Proprietorship

An organizational model in which a sole proprietor is in charge of the entire business, including its assets and debts.